Is there a limit to the input tax refund?
December 18, 2023 | 40,00 EUR | answered by Marco Schottmann
Dear tax consultant,
My name is Simon Ullmann and I am a self-employed entrepreneur in the construction industry. In recent years, I have made larger investments and accordingly paid high amounts of input tax. Now I am wondering if there is a limit for input tax refund and if I may have already reached a limit.
My current situation is as follows: I have invested in machinery, vehicles, and materials in the past years for which I have paid input tax. These amounts add up to a considerable sum that I would like to get refunded. However, I am concerned that there may be a limit that could restrict my refund.
My worry is that I may not get the full amount refunded that I have paid in input tax. This could have a negative impact on my liquidity and financial situation.
Therefore, I ask you as an expert: Is there a limit for input tax refund, and if so, how is it determined? Are there ways to bypass or increase this limit in order to receive a full refund? I would greatly appreciate your professional assessment and possible solutions to this matter.
Thank you in advance for your assistance.
Sincerely,
Simon Ullmann
Dear Simon Ullmann,
Thank you for your inquiry regarding VAT refund and possible limits. As an expert in this field, I am happy to assist you and provide some important information on this topic.
First and foremost, I must reassure you that there is no legally defined limit for VAT refunds. This means that in general, you can receive a full refund of the VAT you have paid for your investments. There is no direct limitation that would restrict your refund.
However, there are some points to consider to ensure that you actually receive the full VAT refund. It is important that all your expenses and investments are properly documented and supported with evidence. Only then can you ensure that the VAT refund is calculated correctly and that you do not forget or overlook any amounts.
Furthermore, it is important that you correctly indicate the VAT refund in your VAT return. You should ensure that all information is correct and complete to avoid possible delays or issues with the refund.
If you are still unsure whether you may have reached a limit, I recommend consulting with your tax advisor or a financial authority. They can provide guidance and initiate further steps for clarification if necessary.
Overall, you should be reassured that there is no fixed limit for VAT refunds and that you can generally receive a full refund of the amount you have paid. With the right documentation and handling, you should not have any issues securing your liquidity and maintaining your financial situation.
I hope this information has been helpful to you and I am available for any further questions. Thank you for your trust, and I wish you continued success in your independent work in the construction industry.
Best regards,
Marco Schottmann
